Price and Quantity Adjustments in the Austrian Labour Markets

Helmut Hofer, Karl Pichelmann and Andreas-Ulrich Schuh
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Karl Pichelmann: Department of Economics, Institute for Advanced Studies, Vienna
Andreas-Ulrich Schuh: Ministry of Finance, Vienna

No 57, Economics Series from Institute for Advanced Studies

Abstract: Austria is among the very few countries in the European Union which have managed to maintain comparatively low unemployment rates and high employment rates. In international comparison Austrian unemployment is very stable over the business cycle. This is mainly due to the high sensitivity of the labour force on cyclical conditions and, partly, also on the relatively weak responsiveness of employment to cyclical fluctuations in output, the latter being possibly attributable to the high degree of real wage flexibility in Austria. However, we also found evidence for outsider effects in the Austrian wage setting process stemming from the increased share of long term unemployed, which plausibly reflect human capital effects on reemployment possibilities for persons being unemployed for extended periods of time. Relative wage structures, on the other hand, appear to be rather rigid.

Keywords: Austrian labour market; Real wage flexibility in Austria; Labour market dynamics; Relative wage structures (search for similar items in EconPapers)
JEL-codes: J3 J4 J6 (search for similar items in EconPapers)
Pages: 22 pages
Date: 1998-09
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Citations: View citations in EconPapers (5)

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https://irihs.ihs.ac.at/id/eprint/1095 First version, 1998 (application/pdf)

Related works:
Journal Article: Price and quantity adjustments in the Austrian labour market (2001)
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